Financial Survey: Magnolia Oil & Gas (NYSE:MGY) versus Crescent Point Energy (NYSE:CPG)

Magnolia Oil & Gas (NYSE:MGYGet Free Report) and Crescent Point Energy (NYSE:CPGGet Free Report) are both mid-cap oils/energy companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, dividends, risk, valuation, profitability and earnings.

Profitability

This table compares Magnolia Oil & Gas and Crescent Point Energy’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Magnolia Oil & Gas 30.46% 20.41% 14.07%
Crescent Point Energy -1.95% 12.92% 7.13%

Risk and Volatility

Magnolia Oil & Gas has a beta of 2, suggesting that its share price is 100% more volatile than the S&P 500. Comparatively, Crescent Point Energy has a beta of 2.17, suggesting that its share price is 117% more volatile than the S&P 500.

Valuation and Earnings

This table compares Magnolia Oil & Gas and Crescent Point Energy’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Magnolia Oil & Gas $1.23 billion 4.03 $388.30 million $2.01 12.12
Crescent Point Energy $2.59 billion 0.00 $422.48 million ($0.08) N/A

Crescent Point Energy has higher revenue and earnings than Magnolia Oil & Gas. Crescent Point Energy is trading at a lower price-to-earnings ratio than Magnolia Oil & Gas, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Magnolia Oil & Gas and Crescent Point Energy, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Magnolia Oil & Gas 1 4 4 0 2.33
Crescent Point Energy 0 0 4 0 3.00

Magnolia Oil & Gas presently has a consensus price target of $28.13, suggesting a potential upside of 15.46%. Crescent Point Energy has a consensus price target of $13.81, suggesting a potential upside of ∞. Given Crescent Point Energy’s stronger consensus rating and higher possible upside, analysts plainly believe Crescent Point Energy is more favorable than Magnolia Oil & Gas.

Insider & Institutional Ownership

94.7% of Magnolia Oil & Gas shares are owned by institutional investors. Comparatively, 49.4% of Crescent Point Energy shares are owned by institutional investors. 1.2% of Magnolia Oil & Gas shares are owned by company insiders. Comparatively, 0.3% of Crescent Point Energy shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Dividends

Magnolia Oil & Gas pays an annual dividend of $0.52 per share and has a dividend yield of 2.1%. Crescent Point Energy pays an annual dividend of $0.34 per share. Magnolia Oil & Gas pays out 25.9% of its earnings in the form of a dividend. Crescent Point Energy pays out -424.9% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Magnolia Oil & Gas has raised its dividend for 2 consecutive years and Crescent Point Energy has raised its dividend for 4 consecutive years.

Summary

Magnolia Oil & Gas beats Crescent Point Energy on 8 of the 15 factors compared between the two stocks.

About Magnolia Oil & Gas

(Get Free Report)

Magnolia Oil & Gas Corporation, an independent oil and natural gas company, engages in the acquisition, development, exploration, and production of oil, natural gas, and natural gas liquids reserves in the United States. Its properties are located primarily in Karnes County and the Giddings area in South Texas principally comprising the Eagle Ford Shale and the Austin Chalk formation. The company was incorporated in 2017 and is headquartered in Houston, Texas.

About Crescent Point Energy

(Get Free Report)

Crescent Point Energy Corp. explores, develops, and produces oil and gas properties in Canada and the United States. The company focuses on crude oil, tight oil, natural gas liquids, shale gas, and natural gas reserves. Its properties are located in the provinces of Saskatchewan, Alberta, British Columbia, and Manitoba; and the states of North Dakota. Crescent Point Energy Corp. was incorporated in 1994 and is headquartered in Calgary, Canada.

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